NEW YORK ( Trefis) -- Last week NetApp ( NTAP) (NASDAQ:NTAP) dipped on F5 Networks ( FFIV) earnings as revenues came in a little below expectations.
While profit for surged by 69% in the first quarter year over year beating analyst expectations, the stock fell as investors had become accustomed to cloud players beating and raising expectations. In addition to NetApp, other cloud EMC ( EMC), Salesforce.com ( CRM) and Riverbed ( RVBD) saw profit taking as a result of F5's earnings. While we are bullish on storage and cloud networking stocks, we felt it was worth reviewing NetApp's position in the industry. In an earlier note we highlighted how cloud computing is transforming the data storage space with all major players are making significant investments to grab the cloud opportunity. NetApp, a large player in the cloud computing space, competes primarily with EMC, VMware ( VMW), H-P ( HPQ) and IBM ( IBM) in the data storage market. We currently have a $64.48 Trefis price estimate for NetApp's stock, about 15% ahead of the current market price. F5, which provides network optimization solutions, is a niche player in the cloud space. The firm is the market leader in application delivery controllers (ADC) which helps network managers control traffic and improve software performance. With the rapid adoption of cloud computing and virtualization, a large amount of work is shared between virtualized infrastructures. As optimization has become increasingly important in a cloud environment, and firms are making significant investments to acquire or develop optimization solutions. Recently NetApp also acquired Akorri Networks , a storage optimization firm that helps companies use their storage capacity more efficiently in virtualized environments.